The Nigeria Deposit Insurance Corporation (NDIC) has announced the sale of the head office and other assets of the defunct Heritage Bank. Acting as the liquidator, NDIC has listed 48 properties and various chattels, including vehicles, office equipment, plants, and machinery, across 62 locations in Nigeria. This announcement was made in an advertorial published in The PUNCH on Thursday.
Properties Up for Sale
The assets up for sale include the main office and its annex at 143 Ahmadu Bello Way and 130 Ahmadu Bello Way, Victoria Island, Lagos. Additionally, six branches in Lagos, four in Abuja, four in Rivers State, and several others nationwide are available for purchase. Interested buyers are invited to inspect these properties and submit their bids to the NDIC office in Lagos. Bids must include a Certified Bank Draft covering 10% of the bid amount. Successful bidders will be required to pay the remaining balance within two weeks of notification.
Verification and Payment to Depositors
Earlier, NDIC had commenced the verification and payment process for depositors with N5 million or less in their accounts, covering about 99% of the bank’s customers. At a recent media briefing in Abuja, NDIC Managing Director Bello Hassan stated that Heritage Bank had a total of 2.3 million depositors. The total deposits stood at N650 billion, while the loan portfolio was approximately N700 billion.
License Revocation and Sector Response
The Central Bank of Nigeria (CBN) revoked Heritage Bank’s license, citing the bank’s violation of Section 12 (1) of BOFIA, 2020. According to the CBN, despite various supervisory measures, the bank’s financial performance did not improve, posing a threat to financial stability. The revocation was deemed necessary after exhaustive efforts to stabilize the bank failed.
Stakeholders in the banking sector have supported the CBN’s decision. Mustapha Chike-Obi, Chairman of the Bank Directors Association of Nigeria (BDAN), expressed confidence in the CBN’s judgment. “BDAN respects the unique position of the CBN in making this decision in the interest of the banking sector,” he stated.
House of Representatives’ Actions
The House of Representatives has called for an investigation into Heritage Bank’s management to identify any potential mismanagement or wrongdoing contributing to the bank’s failure. This resolution, initiated by Uchenna Okonkwo, the representative for Idemili North/Idemili South Federal Constituency of Anambra State, also urges the NDIC to review its operations to ensure it is adequately equipped to fulfill its role as a deposit insurer and liquidator of failed banks.
This comprehensive review is part of the broader efforts to maintain stability and confidence in Nigeria’s banking sector amidst the liquidation of Heritage Bank.
